NNPC reduces price of diesel to N175

The Nigerian National Petroleum Corporation(NNPC), said it has reduced the price of diesel also known as Automative Gas Oil (AGO) N175 from N300.

The reduction represents a decrease of about 42 percent, according to a statement by Mr. Ndu Ughamadu, group general manager, group public affairs of NNPC made available to newsmen on Sunday.

The statement read, “It would be recalled that in the first quarter 2017, retail prices of AGO, which is one of the deregulated products, shot to an all-time high of N300/litre in major demand centres across the country.

“Such unpleasant situation placed a huge burden on truck drivers, who need the product for transporting their vehicles; the nation’s manufacturing sector, which requires it to run its operations as well as on the masses, who need it for household power generation.

“However, following strategic intervention efforts by the NNPC towards sustained improvement in the supply of the diesel, the product’s retail prices as at the end of May 2017 ranged from N175 to N200 across the country (a significant price drop of about 42%), while ex-depot prices also dropped to between N135 and N155.”

The statement said some of the interventions included improving the supply of AGO and remodeling of the product distribution to address sufficiency issues across the country.

“Since January this year, we have worked very hard with relevant stakeholders to improve distribution from refinery depots, by implementing a robust loading programme.”

The statement further stated the corporation resuscitated pipelines and depots in places such as Atlas Cove-Mosimi, Port-Harcourt refinery, and Kaduna refinery.

“Another key intervention that has enhanced supply and distribution of diesel was the corporation’s robust engagement with critical downstream stakeholders where salient issues were raised and duly addressed. These stakeholders include Major Oil Marketers Association of Nigeria (MOMAN), Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD) as well as Independent Petroleum Marketers,” the statement read.

“Furthermore, as a result of consistent positive engagement with the Central Bank of Nigeria (CBN), NNPC equally extended the expansion of Premium Motor Spirit (PMS) Foreign Exchange Intervention Scheme to accommodate diesel and aviation fuel.”

The corporation assured it is making efforts to revamp and commission other pipelines across the country.